topic Should turbotax be including deprecation for current year in selling of a rental house? in Get your taxes done using TurboTax

Should turbotax be including deprecation for current year in selling of a rental house?

jamesrath1970 — Sat, 01 Feb 2020 23:37:53 GMT

We sold our rental house in 2019. TurboTax shows deprecation for 2019. Since we sold the house, should there be no depreciation in 2019? How do I get this to work in TurboTax?

Re: Should turbotax be including deprecation for current year in selling of a rental house?

ColeenD3 — Sat, 01 Feb 2020 23:53:35 GMT

If you had the property available for rent or rented for any time during 2019, there would be depreciation for the current year.

If that is not the case, you should delete the form for 2019 (after noting all depreciation and any passive loss carryovers) and enter the sale in Sale of Business Property.

Re: Should turbotax be including deprecation for current year in selling of a rental house?

jamesrath1970 — Sun, 02 Feb 2020 00:04:55 GMT

We rented the property for 6 months in 2019 and prepared for sale, advertised, and sold for the next 3 1/2 months. So the property can depreciated for 9.5 months in 2019, even though we sold it? I would prefer to just pay the taxes now and be done with it, can I do that?

Re: Should turbotax be including deprecation for current year in selling of a rental house?

AlexanderS08 — Sun, 02 Feb 2020 00:32:32 GMT

Yes, TurboTax will calculate depreciation for the year of the sale. You cannot just "pay the taxes now and be done" as depreciation is a use it or lose it deduction.